DJ INTERIM FINANCIAL STATEMENTS TO 30 JUNE 2019
Coinsilium Group Limited (COIN)
INTERIM FINANCIAL STATEMENTS TO 30 JUNE 2019
27-Sep-2019 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
27 September 2019
COINSILIUM GROUP LIMITED
("Coinsilium" or the "Company")
UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTH PERIOD
ENDED 30 JUNE 2019
Coinsilium Group Limited ("Coinsilium" or the "Company"), the blockchain
venture builder and investor that finances and manages the development of
early-stage blockchain technology companies, is pleased to announce its
unaudited consolidated interim financial statements for the six months ended
30 June 2019.
Now in its fourth year of operations as a listed company, the Directors
remains focused on delivering its vision of providing retail investors with
exposure to a diverse range of high-quality, carefully profiled
opportunities in the fast evolving blockchain technology sector.
Corporate Highlights:
· Wholly owned Gibraltar registered subsidiary, Coinsilium (Gibraltar)
Limited, incorporated;
· Advisory services provided in relation to OASISBloc's presale and
Initial Exchange Offering ("IEO"); and
· The Times Group, India's largest Media group, agrees investment of up to
US$6.5m in Coinsilium Investment portfolio company, Indorse, including an
initial investment of US$2m as a convertible note, with a valuation of
US$15 million with an option of a further US$4.5m. Investment is being
used for Indorse's expansion into India and to build demand for its
services through The Times Group's 360-degree media assets in India, which
rank among the most popular titles in the country. Based on The Times
Group investment at a valuation of USD $15m, the implied value of
Coinsilium's 10% shareholding in Indorse is USD $1.5m, representing a 350%
uplift in the two years since Coinsilium's initial investment at the
pre-seed and seed stage.
Commenting, Malcolm Palle, Chairman of Coinsilium, said: "The period under
review was a time of significant transition for Coinsilium, particularly
with the relocation of the Company's core operations to Gibraltar, which
occurred during the first three months of the year. Despite less than
favourable market conditions for the first half of this period, it was
pleasing to see that by the close, a sector-wide recovery was well underway,
with the industry also regaining much of its previous momentum.
"We are witnessing the blockchain industry's move toward maturity and as
such, Coinsilium is proud to be advising, and investing in what we believe
are solutions which will unleash the benefits of blockchain technology to
society at large. In particular, we believe our work with IOV Labs provides
an exciting market opportunity as the RSK blockchain and the RSK
Infrastructure network (RIF) will become the backbone of numerous highly
useful decentralised applications (dApps) across various sectors.
"Across the Company's investing, venture building and advisory services
divisions, we look forward to the future with confidence. Finally, the Board
would like to once again thank all shareholders, partners and team members
for their continued support."
Financial Highlights:
· Revenue for the period of GBP108,967 (H1 2018: GBP1,333,515) - the decrease
attributable to the fees generated from Token Advisory Services;
· Profit for the period from continuing operations GBP237,787 (H1 2018:
profit of GBP554,605);
· Profit per share of GBP0.002 (H1 2018: profit per share of GBP0.005);
· Financial assets at fair value at profit or loss of GBP1.69m at 30 June
2019 (31 December 2018: GBP1.4m);
· Total other current assets GBP164,945 at 30 June 2019 (31 December 2018:
GBP251,810); and
· As at 30 June 2019, cash and cash equivalents amounted to GBP475,340 (31
December 2018: GBP592,171).
· No dividends were paid or recommended to be paid during the period.
The directors of the Company accept responsibility for the contents of this
announcement.
For further information, please contact:
Coinsilium Group Limited +44 (0) 7785 381 089
Malcolm Palle, Executive Chairman www.coinsilium.com
Eddy Travia, CEO
Peterhouse Capital Limited +44 (0) 207 469 0930
Guy Miller / Mark Anwyl
(NEX Exchange Corporate Adviser)
SI Capital Limited +44 (0) 1483 413 500
Nick Emerson
(Broker)
Yellow Jersey PR +44 (0) 20 3004 9512
Chris Flame / Dominic Barretto
(PR & IR)
Outlook
We are now seeing a rapid maturation within the industry itself which bodes
well for many of our current and proposed new ventures. And as we now look
to expand the scope of our global advisory services and venture activities
from our Gibraltar base, we are most optimistic that we can now start to
develop a sustainable and scalable advisory service offering with the
potential to generate reliable recurring revenues, to complement our ongoing
token sale advisory services and investment activities.
It is also most encouraging to see the growing pace of mainstream awareness
for cryptocurrencies and a greater sense of mainstream acceptance, driven in
no small part by the media coverage of the likes of Facebook and their
partners with the proposed launch of Libra in 2020.
The Directors are optimistic that this trend of awareness and acceptance is
set to continue, and with the relocation of our core activities to Gibraltar
now complete, the Company has a solid base from which to build on this
momentum and ensure that the business is well positioned to capitalise on
the growth opportunities that lie ahead.
Post Period Highlights:
· 1 July 2019 - Annual General Meeting of the Company held at 9.30 a.m.
all resolutions were duly passed;
· 11 July 2019 - New Strategic Advisory Agreement (the "Agreement").
Coinsilium (Gibraltar) Limited together with StartupToken Limited have
signed an Agreement with IOV Labs Limited to support and promote the RSK
Smart Contract Network and RSK Infrastructure Framework blockchain
solutions in Singapore and the Southeast Asia enterprise markets;
· 29 July 2019 - Appointment as an Advisor to Jur AG ("Jur"). Jur is a
Zug-registered company developing a blockchain-based decentralised legal
ecosystem, automating the process of contract creation, execution,
enforcement and dispute resolution; and
· 2 September 2019 - Investment portfolio company Indorse Pte. Ltd
provided the Company with an Operational Update. Highlights included,
Strong growth and robust pipeline of new small and large enterprise
clients from India and Singapore. Successful delivery of strategic
advertising campaigns, mainly through the Economic Times print and online
media channels, leveraging the relationship with The Times Group. Distinct
product lines and optimised, scalable revenue model established. Material
near term revenues targeted with two Fortune 500 companies amongst initial
clients. Featured as a sponsor for the prestigious Economic Times Startup
Awards 2019.
Significant Developments for Coinsilium's Investment Portfolio Companies:
Blox
Blox enables users, traders and enterprises to manage and track their
cryptocurrency portfolio with pro tools and advanced management features
like auto-sync for exchanges and wallets, and daily snapshots of the
portfolio balance and activity.
Throughout the first half of 2019, the Blox team has continued to on-board
business clients paying a monthly subscription to access Blox professional
cryptocurrency portfolio management tools. Blox allows companies access to
share the workspace with team members, auditors, CFO, and CPA to include all
parties involved in accounts, audits or taxes preparations.
Bundle Network
In January 2019, Bundle Network reported they had strengthened their
collaboration with Istanbul-based startup accelerator RDC Smartup. RDC
Smartup had been established by software development company RDC Partner.
RDC Smartup's co-founder Onder Uysal joined Bundle Network management team
in charge of strategy and business development.
In February 2019, Bundle pursued the development of the Beta version of its
platform and integrated some of the main cryptocurrency exchanges.
In April 2019, the Bundle Network Head of Strategy and Business Development
joined the Draper University programme. Draper University is a Silicon
Valley-based school for entrepreneurs founded by Tim Draper.
Elevate Health
During the first half of 2019, Elevate Health has pursued the development of
their proprietary mobile application with programmes to track and assess the
changes in lifestyle behaviour of users in preparation for the roll out of a
comprehensive pilot program in Southeast Asia and Australia.
Programmes developed by Elevate Health include:
Unplug: a proprietary smartphone device management tool to integrate with
the Elevate Health App, developed for corporations with the aim of reducing
daily screen time use by their employees (Facebook, WhatsApp etc) for non
work-related purposes and to prevent loss of productivity and attention
associated with these habits. Corporations will reward employees for time
spent offline via Unplug.
Soberlink: Elevate Health is working with Soberlink, an FDA-cleared Cellular
Device which allows the remote detection of alcohol use and incorporates
biometric facial recognition for monitoring an individual's sobriety.
Potential use cases include, for example, insurance companies and recovery
treatment centres. The hardware device interfaces with the Elevate Health
mobile phone application. Rewards will be paid to users via the Elevate
Health platform following negative results indication if no alcohol was
detected by the device.
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Quit: Designed to support users to quit smoking. A small and discreet smart
device plugs into Quit and is fingerprint protected. The user wears the
'Smokerlyser' and receives random requests to test the CO level showing a
difference in the smoking frequency. The results of the tests are sent and
processed automatically by the Elevate Health platform and rewards are paid
to the users following negative results indicating a decrease in the smoking
frequency.
Coinsilium interest in Elevate Health: 5.0 % of the total equity
Factom
Post period, in August 2019, Factom announced that the Factom Protocol was
being leveraged by a new project, the PegNet, that adds payments and store
of value utilities to the Factom Protocol. The PegNet is an independent,
open source protocol that delivers 30 protocol backed tokens pegged to real
world assets such as the U.S. dollar, Euros and other key fiat currencies as
well as hard assets, such as gold, and a number of cryptocurrencies.
According to Factom, the PegNet should increase liquidity and demand for
Factom's tokens. PegNet CPU mining went live in August 2019.
Post period, in September 2019, the U.S. Department of Energy ("DOE")
granted circa USD200,000 to Factom to protect the national power grid.
According to the DOE, the project seeks to protect the security of millions
of devices.
Coinsilium interest in Factom: 1.06 % of the total equity
Indorse
Indorse uses a global network of experts to assess and confirm the
abilities, expertise, and achievements of candidates to help companies
worldwide find the best tech talent? -? with an initial focus on the coding
sector.
In June 2019, Brand Capital, the strategic investment arm of India's largest
media house, The Times Group, agreed to invest up to US$ 6.5m in the
Singapore-based skills verification platform Indorse. The investment was to
be used for Indorse's expansion into India and to build the demand for its
services through The Times Group's 360-degree media assets in India, which
rank among the most popular titles in the country. The investment has been
structured as a USD $2m convertible note, with a valuation of USD $15
million, with the option of a further tranche of USD $4.5m.
Indorse have already worked with both small and large tech companies in
finding suitable talent. Most recently, it conducted a tech recruitment
event to assess coding and data science candidates for South-East Asia's
biggest ride-hailing firm, Grab, through which they processed 2,500
applications.
Post period, in August 2019, Indorse sponsored the Economic Times Startup
Awards 2019 which rewarded noticeable start-ups in India on the back of
these start-ups outstanding performance. Malcolm Palle, Executive Chairman,
and Eddy Travia, CEO, were representing Coinsilium at the event in
Bangalore.
Coinsilium interest in Indorse: 10.0 % of the total equity
RSK / IOV Labs
In February 2019, IOV Labs announced that the RSK blockchain had become the
most secure smart contract platform in the world, and the second most secure
blockchain behind the Bitcoin blockchain. As reported by the Crypto51
website, which aggregates data from Mine the Coin, CoinMarketCap, and
NiceHash, the cost at the time to execute a 51% attack on Bitcoin cost US$
244,853. By surpassing 45% of the hashing power of the Bitcoin network, an
attack on the RSK Smart Contract Network would cost approximately US$
112,000 per hour. This made RSK one of the most secure and reliable
platforms for developers to build their dApps and proved that merge-mining
can succeed in securing Bitcoin sidechains.
In April 2019, IOV Labs announced that developers can now launch an RSK
Smart Mainnet node on Microsoft's Azure BaaS offering, becoming one of the
few public blockchains supported by Microsoft's Blockchain as a Service
(BaaS) marketplace. The integration provides a simplified process for
setting up an environment that facilitates the development of decentralized
applications (dApps) and services supported by the Bitcoin blockchain.
In May 2019, IOV Labs announced it has officially launched the RIF Lumino
Network as part of the RSK Infrastructure Framework (RIF OS). RIF OS is a
suite of open and decentralized infrastructure protocols that enable faster,
easier, and scalable development of distributed blockchain applications
built atop the RSK Network.
The RIF Lumino Network, an integral part of the RIF Payments Protocol,
provides scalability without compromising long term sustainability. The RIF
Lumino Network is similar to the Lightning Network but provides scalability
not only for Bitcoin but for every token running on the RSK Network.
The RIF Lumino Network is the second major implementation of RIF OS
protocols to be launched on RIF OS since its debut in November 2018.
In May 2019, IOV Labs and Monday Capital announced the launch of the first
Blockchain Innovation and Development Studio for Bitcoin, RSK and RIF OS in
San Francisco and a global Ecosystem Fund. The Studio will create new
developer tools that will streamline the integration of decentralized
infrastructure. It will be a space of experimentation that facilitates the
creation of next-generation blockchain solutions in partnership with
startups and corporations in order to identify real-world problems that
blockchain-based products and services can solve.
The Ecosystem Fund, managed by Monday Capital, a strong supporter of the RIF
Ecosystem, will focus on supporting projects around the world that would
benefit from RSK/RIF OS technology integration through targeted investments
of between $100,000 and $1 million. The Ecosystem Fund will work closely
with the Studio to ensure holistic support of the projects.
In June 2019, IOV Labs announced a partnership with Swarm, a distributed
storage platform and content distribution service, to implement and address
the incentivization behaviour of the Swarm network as a whole, including the
Ethereum and RSK implementations. As part of the collaboration, they are
also jointly developing the first implementation of the concept under RIF
Storage services - which will pave the way for a wide array of innovation
related to the blockchain storage industry.
RIF Storage is a unified interface and set of libraries to facilitate
encrypted and decentralized storage and streaming of information. RIF
Storage is meant to allow users to store and share all sensitive data in a
secure manner. The accounting and payment system will utilize the RSK
sidechain, notably including the recently launched Lumino transaction
scaling solution. The RIF Storage beta launch integrated with Swarm on RSK
is expected to be launched by the end of Q3 2019.
In June 2019, IOV Labs announced the launch of RIF Name Service Multi-Crypto
which allows users to manage all domains from one master dashboard,
streamlining ease of use and fostering blockchain technology mass adoption.
A first for the industry, the improved RIF Name Service (RNS) is the only
service that supports and manages domains originating from any blockchain.
Previously, RNS could only support addresses built on the RSK Network,
however, with the new upgrade, domain owners can integrate their domains
into the RNS architecture and manage them from one master dashboard,
streamlining decentralised domain ownership.
RNS simplifies the blockchain Domain Name System (DNS), by turning
traditional blockchain domains that appear as a series of randomised letters
and numbers into human-readable form, such as a name or an easily remembered
word, greatly reducing complexities and errors while opening up blockchain
domain accessibility.
Coinsilium interest in IOV Labs: Coinsilium shareholding of 65,000 series
Seed 1 RSK shares was converted to RIF tokens by way of a 'share for token'
swap as announced on 19 November 2018. Coinsilium will receive approximately
1,951,846 RIF tokens over the stated vesting period.
Financial Review
In the period under review revenue for the six months ended 30 June 2019 was
GBP108,967 compared to GBP1,333,515 for the six months ended 30 June 2018. The
decrease is attributable to the fees generated from Token Advisory Services.
The Group generated a profit for the six months ended 30 June 2019 from
continuing operations of GBP237,787 which was compared to a profit of GBP554,605
for the six months ended 30 June 2018.
The earnings per share was a profit of GBP0.002 for the six months ended 30
June 2019 which was compared to a profit of GBP0.005 per share for the six
months ended 30 June 2018.
The financial assets at fair value through profit or loss increased to
GBP1.69m at 30 June 2019 and this compared to GBP1.4m at 31 December 2018.
The total other current assets, which is a combination of cryptocurrencies
and tokens, amounted to GBP164,945 at 30 June 2019, which was a decrease from
GBP251,810 on 31 December 2018.
Cash and cash equivalents amounted to GBP475,340 as at 30 June 2019, compared
to GBP592,171 as at 31 December 2018.
In summary, given the prevailing market conditions during much of the period
under review, the Board are pleased with the Company's profitability and
performance during the past six months compared to the full year ended 2018.
Corporate
TerraStream Limited
Coinsilium's wholly owned Gibraltar-based subsidiary, TerraStream Limited
was established with the aim to facilitate the application of blockchain
technology for Token based alternative funding solutions with potential
applications across several industry sectors; the initial focus being on the
mining and resource extraction industries and precious metals in particular.
From a regulatory perspective, this business model would likely be
considered as 'asset backed' lending and in the Company's Strategic Business
Update announced 14 January 2019, the Company highlighted the need for
greater regulatory clarity before committing further resources towards
TerraStream's development. The Directors are now considering a revised
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